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Bobbit charter authorizes 200,000 shares of $20 par value common stock and 50,000 shares of 6% cumulative and nonparticipating preferred stock, par value $100/sh. Bobbit engaged in the following stock transactions 1. Issued 40,000 shares of common stock for $1,920,000 2. Issued 10,000 shares of preferred stock in exchange for machinery valued at $1,120,000 3. Purchased 1,000 shares of common stock at $46/sh for the treasury. 4. Sold 500 shares of treasury stock for $51 per share At Dec 31, 2014, Bobbit retained earnings balance was $2,200,000. Write the journal entries and prepare the stockholdersequity section of the balance sheet.

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Bobbit chaml Cash Ale . . Ir 1,929000 To Comau stok Ale 800,000 To faid, in capiał.-H ce uwodiek 1,120,000 value ,-800,000 L0,000 Lomnn Bck valud ale .$ 1,120,000 · A D ,120, 00 1, 000,000 120, 000 000 1,000,00 6Y. 6. 00D To Cash ileby 25, Sco 23,000 give쓰 ·零2, 200, 000 8 Pard in Capil. 40,000 sharu kaud, 39, 500 chauolsh 2,500 Paid in Coptal Mk- Respond toc Total Paid in Capial Retained earning 3,032,500 At Subtetal 5,232, 5005,232, 5oo laus est of bssauay stock 500 GRG Laus: Cest 5201,5eD Tolal stock bolds equy

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